Allstate Journal

Dow’s daily triple-digit moves

Those headlines lately spell stock market volatility. Since late August, the Dow Jones industrial average has been experiencing massive mood swings, with the blue chip stock gauge finishing up or down more than 100 points 19 of the past 24 trading days.USA - Business - Dow Jones Sign

Get used to it, Wall Street pros say. Big moves make news and get people nervous. The once-stable Dow has now suffered triple-digit point declines a dozen times, or half of the time, in those 24 trading sessions — including Tuesday’s 180-point drop. Today, the Dow is down almost 110 points, as the trend of triple-digit moves continues.

The wild swings are a sign that investors are confused, concerned and cautious as the 6 1/2-year-old bull market in stocks runs into its first serious corrective phase since late 2011. Indeed, the Dow and broader Standard & Poor’s 500 and Nasdaq composite all hit official correction territory last month when the indexes suffered their first 10% drops in four years.

A note from RBC suggests that, “For now, the short-term profile appears to be corrective.” David Rosenberg, chief strategist at Gluskin Sheff, said: “Investors seem to be getting cold feet.” Tom Stringfellow, chief investment officer at Frost Investment Advisors, described investors in a research note as “dazed and confused.” A report Monday from investment firm Strategas Research Partners carried the headline: “Danger.”